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one of its sixteen Swedish subsidiaries which subsequently
created the LAMCO Joint Venture Operating Company (36). This
construction reduced LAMGO to a holding company, and the
Government's participation in the Board of Directors has become
a token representation in a Company which has neither a fulltime
nor centrally located and permanent staff nor a Head Office of
its own (37).
Granges' role in the entire enterprise is not limited to that of
supplier of both equity and loan capital and manager of the
mining operations (including related activities such as
exploration work). By an agreement signed February 3» 1959 the
Swedish company had become the exclusive sales representative, for
the 75? of the total Nimba ore production accruing to LAMCO
whereas by the same agreement Granges was made the only shipper
of LAMCO's portion of the ore output. The activities in respect
of the sales of the ore are carried out by Malmexport AB, a
Swedish company in which Granges owns a majority share. Granges
owns directly 50? of Malmexport's shares, and also has a 4*3?
interest in the co-owner of Malmexport AB, the (also Swedish)
company of Luossavaara - Kiirunavaara AB. The remaining shares
in the latter company are owned by the Swedish Government (38).
On the initiative of the Liberian Government the 1959 shipping
arrangement was changed three years later. Through the Shipping
Arrangement of October 1, 1962 with LAMCO the Government became
entitled to ship 50? of all the ore sold by LAMCO on a c.i.f.
basis despite Section 4 of the 1960 Mining Concession Agreement
which had granted, exclusive rights to ship, sell and export the
produce of the company. For this purpose another company was
created, the Providence Shipping Company, in which both Granges
and the Liberian Government took a 50? equity interest, while the
management of this new shipping company was given to Granges.
The shipping activities related to the sales of the Nimba ore are
carried out by Granges Shipping, a 100? subsidiary of Granges AB.
The Management of the Mine (39)
Management related activities inside Liberia are carried out by
G.I.M. 's Liberian subsidiary, the LAMCO Joint Venture Operating
Company. Activities outside Liberia in respect of the management
of the mine were at first undertaken by a specially created
Liberia Division within the Stockholm-based G.I.M. In the late
1960's G.I.M. completely took over these functions by dissolving
this Liberia Division. The managerial responsibilities of G.I.M.
cover the entire production process and include the construction
of the needed infrastructure (buildings, railroad, port
facilities, etc.), the recruitment of personnel and the purchase
of equipment, the conduct of the actual mining operations, the
transportation of the ore from the Nimba Mountains to the Port of
Buchanan, the management of the pelletizing plants, the railroad,
and the Port of Buchanan, the shipment of the ore as well as the
administration related to all these activities and the conduct of
exploratory activities.